CONSUMER PROTECTION ACT:  ADVERTISEMENTS

OF COINS THAT ARE NOT LEGAL TENDER IN U.S.

House Bill 5626

Sponsor:  Rep. Steve Bieda

Committee:  Judiciary

Complete to 3-11-08

A SUMMARY OF HOUSE BILL 5626 AS INTRODUCED 1-17-08

The bill would amend the Consumer Protection Act to include the following offense in the act's list of unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce (which are unlawful):

·                    Failing to clearly and conspicuously disclose in a written advertisement, in at least 10-point boldfaced type, that a coin or medallion is not legal tender of the United States and cannot be exchanged or redeemed at face value for U.S. currency.

This applies to written advertisements by a mint, engraver, foreign government or authority, or other issuer or manufacturer of a coin or medallion advertised as "legal tender" but not a U.S. coin currently in circulation.

It would not apply to a written advertisement by a dealer of coins or medallions not related to or affiliated with the issuer or manufacturer of the coin or medallion.

[The act is enforced by the Attorney General, local prosecutors, and in some instances by private civil actions.]

MCL 445.903

FISCAL IMPACT:

The bill would have an indeterminate fiscal impact, depending on the number of enforcement actions.

                                                                                           Legislative Analyst:   Chris Couch

                                                                                                  Fiscal Analyst:   Viola Bay Wild

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.